Kottayam: M Vasanthagesan IRS, Executive Director of the Rubber Board chaired a meeting of the representatives of the major tyre manufacturing companies and office bearers of the Indian Rubber Dealers Federation (IRDF) in the context of falling rubber prices. The meeting was organized at the Rubber Board Head Office at Kottayam.
The meeting took stock of major issues in the current market and discussed probable strategies for containing the fall in rubber prices. The ED expressed his deep concern over the current market situation. Despite an increase in the production and consumption of NR during April – June, prices have been declining since May 2023. However, it may be noted that similar trends were seen during the periods in previous years.
The representatives of the tyre companies expressed their concern over the shortage in the supply of NR during the April-May period, which compelled them to proceed with imports to bridge the domestic market shortage. The representatives of the IRDF raised their deep concern over the absence of active buying by major consumers, which lead to the piling of rubber stock with dealers and financial losses incurred by them. As the peak production period is fast approaching, IRDF requested tyre companies to resume lifting pending orders urgently so that they can proceed with fresh purchases.
The Executive Director urged the tyre manufacturers to resume domestic purchases at the earliest and support growers and dealers from further losses and stabilizing market prices. He reiterated that when the Government of India is working towards improving farmers’ income, any irrational fall in rubber prices cannot be justified. During April-June 2023, India’s total rubber production and consumption were 1,39,000 metric tonnes and 3,57,000 metric tonnes, respectively. Total rubber imports during April-June 2023 were 1,18,813 metric tonnes, which is lower by 4 per cent than the previous year.
Anoop John & Yeldo Chacko (MRF Tyres), Dileep Jose (JK Tyres), Murali Gopal (Apollo Tyres) and Hari (CEAT) attended the meeting. George Valy (President), Biju P Thomas (General Secretary) and Likayat Ali Khan (Treasurer) represented the Indian Rubber Dealers Federation in the meeting. Dr Binoy Kurian, Deputy Director – Marketing of Rubber Board also participated in the discussions.